Markets· August 17, 2026 at 03:33 p.m.
Crude Prices Mixed Amid Middle East Tensions and Oil Supply Transit
Key takeaways
- Larger volumes of crude oil are moving through the Persian Gulf despite hostilities
- Iran and Oman may be nearing a deal on managing the Strait of Hormuz
- The IEA expects the global oil supply deficit to worsen
Crude oil prices are mixed today, with slight declines in WTI crude oil and gains in RBOB gasoline. The price movements come as larger-than-expected volumes of crude oil transit through the Persian Gulf despite hostilities between the US and Iran, and as signs emerge that Iran and Oman may be edging closer to a deal on managing the Strait of Hormuz.
The UAE, Qatar, Iraq, and Kuwait have been shipping crude oil out of the Persian Gulf by turning off the transponders on their oil tankers, or 'dark' transits. Crude prices initially moved higher today amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, but came under pressure as Iran and Oman appear to be nearing a deal on the Strait of Hormuz.
Treasury Secretary Bessent said last Friday that the administration will soon announce unprecedented economic measures against Iran. The IEA reported last Wednesday that the global oil supply deficit will worsen, even as oil demand is taking a hit from the war and high prices.
In other news, Ukraine has intensified drone attacks on Russian oil infrastructure, while OPEC approved an increase in crude production for September. The number of active US oil rigs rose last week to a 1.25-year high.
